Release of Liability

California Release of Liability for Trucking Company Owners

Protect your CA trucking business with a Release of Liability compliant with AB 5, CCPA, and Cal-OSHA. Safeguard assets against accident and cargo claims.

By The PaperForge Editorial TeamLast updated February 28, 2026

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Why You Need This Release of Liability

As a California trucking company owner, you navigate a high-risk landscape involving FMCSR compliance, CARB emission standards, and the complex AB 5 'ABC' test for worker classification. A standard waiver isn't enough to mitigate accident liability or cargo damage claims. You need a California-specific Release of Liability that incorporates Cal. Civ. Code § 1550 requirements for lawful consideration and specifically addresses industry-specific pain points like BOL disputes, detention charges, and ELD compliance. This document ensures that when settling claims or entering agreements with third-party vendors or freight brokers, you are protected by robust Indemnification and Assumption of Risk clauses that stand up to California's strict legal scrutiny.

Liability Waiver & Risk Allocation

What This Release Covers

Beyond the standard release of liability sections, this template adds fields specific to Trucking Company Owner:

+US DOT and MC Number of the Releasee

+Does this release involve the transport of Hazardous Materials (PHMSA/HMR compliance)?

+California Forum Selection (pursuant to Cal. Lab. Code § 925)

+Specific Bill of Lading (BOL) or Freight ID Numbers being released

The core legal purpose of a Release of Liability is to protect one party (the Releasee) from legal claims or lawsuits from another party (the Releasor) related to the subject of the release, such as an activity, transaction, or event.

Liability Risks This Release Addresses

Accident Liability

Utilize detailed contracts with clients outlining liability limitations and responsibilities, maintain comprehensive insurance policies.

Cargo Damage Claims

Use detailed Bills of Lading (BOL) that limit liability and specify damage claim procedures, maintain cargo insurance.

Waiver Law in California

Cal. Civ. Code § 1624 — California's Statute of Frauds requires certain contracts to be in writing, such as those for the sale of goods over $500, and contracts that cannot be completed within one year. This statute mirrors the UCC but differs in certain contexts, such as real estate transactions.

Cal. Civ. Code § 1550 — California requires parties to a contract to have both the capacity to contract and that there must be lawful consideration. The Code highlights certain scenarios that might not traditionally meet these elements under common law.

What Makes a Liability Release Enforceable

For this release of liability to be legally valid:

+Signatures of all parties involved to demonstrate their consent and understanding of the release terms.
+Consideration, either in the form of payment, service opportunity, or other value exchanged, although this depends on state law.
+Proper identification and description of the activity, event, or relationship to which the release pertains.
+Age of majority confirmation, ensuring all parties are legally capable of entering into the agreement (usually 18 or older).

Common mistakes to avoid:

!Failing to clearly define the scope of the release, leading to ambiguity about what claims are covered.
!Omitting language that discusses the Releasor's acknowledgment of risks involved, which can lead to disputes about assumption of risk.
!Not specifying governing law, which can result in jurisdictional disputes if enforcement becomes necessary.
!Including broad, unenforceable language that unintentionally waives rights beyond what is intended, potentially voiding the agreement.
!Neglecting to properly identify the parties, rendering the release confusing and possibly unenforceable.

Frequently Asked Questions

How does California AB 5 impact my release of liability forms?

Under AB 5 (Cal. Lab. Code §§ 2750.3 and 3351), the 'ABC' test determines whether a driver is an employee or independent contractor. Your release documents must be carefully drafted to avoid language that implies control over the driver, which could undermine your classification status and lead to labor law violations under Cal. Lab. Code § 2922.

Can I include a non-compete clause in my trucking liability release?

No. According to Cal. Bus. & Prof. Code §§ 16600-16602, California generally prohibits non-compete agreements. Including such language could render that portion of your agreement void and potentially expose you to legal challenges.

What role does Cal. Civ. Code § 1624 play in freight disputes?

Cal. Civ. Code § 1624, California's Statute of Frauds, requires contracts—including releases related to freight charges or services that cannot be completed within one year—to be in writing and signed to be enforceable. Oral releases are often insufficient for protecting your DOT and MC numbers from liability.

Is an 'Assumption of Risk' clause enough to stop personal injury lawsuits in CA?

While recommended for compliance with California Civil Code, an Assumption of Risk clause must be paired with an Acknowledgment of Understanding and proper Consideration to be enforceable. It helps mitigate claims related to manual loading/unloading or yard hazards, but it cannot release you from 'gross negligence' under California law.

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